Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Entrepreneurs’ relief on disposal of assets in settlements

18 September 2019
Issue: 4713 / Categories: Tax cases
The Quentin Skinner 2005 Settlement L, R and B (TC7312) 

In July 2015 three beneficiaries were given interests in possession under the Skinner settlements. In August 2015 the settlor gave 55 000 D ordinary shares in DPAS Ltd to each settlement. The beneficiaries already each held 32 250 C shares making DPAS Ltd their personal company for the purpose of TCGA 1992 s 169S. In December 2015 the settlements disposed of the shares. The settlements and the beneficiaries claimed entrepreneurs’ relief (s 169M).

HMRC refused relief saying the beneficiaries had not held an interest in possession in the shares held by the trusts for one year. It was accepted that the beneficiaries were officers of the company and that it was trading. The issue was whether s 169J(4) also required the beneficiaries to have been qualifying beneficiaries for a period of one year ending not earlier than three years...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon